Current account deficit down in Kazakhstan in 2017

Business Materials 3 February 2018 17:42 (UTC +04:00)

Baku, Azerbaijan, Feb. 3

By Nigar Guliyeva – Trend:

According to the preliminary estimates, the current account deficit decreased by almost twice in 2017 and amounted to $4.7 billion compared to 2016, according to the message posted on the website of the National Bank of Kazakhstan.

The current account was almost balanced in the fourth quarter of 2017. Thus, $80.9 million accounted for a small deficit. The trade balance amounted to $5.5 billion in the fourth quarter of 2017.

The export of goods for the year increased by 32.2 percent or by $12 billion and amounted to $49.3 billion. The export of oil and gas condensate increased by 37.8 percent. The exports of ferrous and non-ferrous metals increased by 51.6 percent and 27.1 percent, respectively.

Imports of goods amounted to $31.8 billion increasing by 13.1 percent for the year, while there has been a slowdown in import growth rates in the second half of 2017.

According to the preliminary data for 2017, net capital inflows in the financial account (excluding operations with reserve assets of the National Bank) amounted to $5.5 billion.

At the same time, in the fourth quarter, a net outflow of $1.2 billion was recorded in financial account transactions as a result of an increase in foreign resident assets and the repayment of debt obligations by residents.

Foreign direct investment (FDI) net inflows amounted to $3.5 billion, declining from $13.5 billion in 2016.

However, the foreign assets of the National Fund of Kazakhstan increased in the fourth quarter of 2017. Reserve assets (excluding assets of the National Fund of the Republic of Kazakhstan) as of January 1, 2018 were estimated at $30.7 billion ($29.5 billion as of early 2017).